Bitcoin falls below $ 20,000 when US inflation rises above 9%
The price of Bitcoins (BTC) has crashed below 20,000 dollars after news that inflation in the US has reached its highest point in 40 years.
According to the latest statistics released by the US Bureau of Labor Statistics, the consumer price index for June 2022 was 9.1%, up from 8.6% recorded in May 2022.
The latest statistics confirm that inflation is rising at an alarming rate in the United States and around the world.
Bitcoin crashes below $ 20k
According to CoinGecko data, the Bitcoin price fell by more than 3% from 13:06 GMT after the news, with the 1-hour candle to the bottom to $ 19,255. Ethereum (ETH) is also not left out as the value fell by around 4% from 13: 06 GMT, reaching the bottom of $ 1033.
The total liquidations on Bitcoin in the last 24 hours peaked at $ 85 million, with over $ 30 million of what happened in the last four hours, according to Coinglass data.
Meanwhile, some investors had anticipated the rise in inflation and had taken short positions against Bitcoin.
Shorts are piling up ahead of today’s CPI release.
BITI saw its 2nd largest daily net inflow since its launch yesterday, corresponding to daily growth in short exposure of 715 BTC, while BITO saw a calm day.
Both BITI’s and BITO’s BTC equivalent exposure reached new ATHs yesterday. pic.twitter.com/0A4s5Fps98
– Vetle Lunde (@VetleLunde) July 13, 2022
Traditional market indicators such as NASDAQ did not perform better. According to data on the official website, the market’s present value has experienced a decline of around 1% to the present value of 11,264. The market had reached a peak of 11,483 earlier today.
Another higher interest rate on the way?
With new evidence that US inflation is not declining, analysts predict that the Federal Reserve may raise interest rates by another 75 basis points in September.
Jerome Powell, chairman of the Fed Reserve, had previously said the bank would need to see “convincing evidence” that inflation is declining because “further surprises may await”.
According to the bank chairman, the evidence must be a “series of falling monthly inflation readings.”
US President Joe Biden called the current inflation figures “unacceptably high” and said they did not reflect recent improvements.
CZ, Saylor responds
Binance chief Changpeng Zhao has reacted to inflation news by saying that “9.1% inflation is magically low.”
Read several times that 80% of USD in circulation was printed in the last 2 years. If it is correct (it looks from the diagram 👇) …
an inflation rate of 9.1% is magically low. How did they do it?
»M1 | St. Louis Fed https://t.co/6JwKbIHmcM
– CZ 🔶 Binance (@cz_binance) July 13, 2022
According to CZ, we should see an increase in inflation of 500% because 80% of the USD in circulation was printed in the last two years.
MicroStrategy CEO Michael Saylor shilled Bitcoin and said, “it’s just a matter of time before the world discovers 1 BTC = 1 BTC.”
Annual inflation in USD CPI is +9.1%, Other currencies continue to weaken against the dollar: Annual USDAUD is +10%, USDGBP is +16%, USDEUR is +17%, USDJPY is +24%, USDTRY is +102 %. It’s just a matter of time before the world discovers 1 BTC = 1 BTC. pic.twitter.com/40VWgP9j9U
– Michael Saylor⚡️ (@saylor) July 13, 2022
